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Navigating the FedEx Contractor Model with Amy + Dave Byers — Transcript

by Route Consultant · 4,816 words · 672 segments · language en · Watch on YouTube

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  1. 0:00Welcome to Industry Insights with Route
  2. 0:02Consultant, your front row seat to the
  3. 0:04fast-moving world of logistics and
  4. 0:06beyond. Each week, we bring you
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  9. 0:17down with expert guests to explore
  10. 0:19emerging trends and pressing topics
  11. 0:22across a wide range of industries. This
  12. 0:25is Industry Insights.
  13. 0:27[Music]
  14. 0:29We are back in the studio with Dave and
  15. 0:32Amy Buyers. And this time we're going to
  16. 0:34talk a little bit about something that I
  17. 0:36think people don't always get right or
  18. 0:37don't always understand properly when
  19. 0:39they see this space for the first time
  20. 0:40or even if they've been in it for 10, 20
  21. 0:42years. So I want to talk a little bit
  22. 0:43about the contractor model and how we
  23. 0:45actually relate to FedEx. So you're an
  24. 0:48independent service provider, an ISP
  25. 0:50with FedEx or a transportation service
  26. 0:53provider, a TSP. What does that even
  27. 0:55mean when you're talking about who you
  28. 0:57are when you relate to FedEx? What do
  29. 0:59you think of FedEx as in this model? So
  30. 1:01for us, FedEx is the customer. Okay.
  31. 1:03100% customer. Um we are a vendor. We
  32. 1:06carry a vendor badge. Our employees
  33. 1:08carry vendors vendor badges. They are
  34. 1:10employees of Slicker Trucking. Um so
  35. 1:12there is an armslength relationship. And
  36. 1:15what that arms length is is the ISP or
  37. 1:19TSP agreement that we sign. That's the
  38. 1:22the distance between our customer and
  39. 1:25our employees. That's the separation.
  40. 1:27And I think that um independent service
  41. 1:30provider agreement ISPA is PND and TSPA
  42. 1:34is line hall and we are both um so we
  43. 1:37have to follow all the rules and they're
  44. 1:39different um in each in each sandbox if
  45. 1:42you will. Yeah. And you know we call
  46. 1:45them contractors. you know, how back
  47. 1:48when the model was IC, when it was
  48. 1:51actually just an independent contractor,
  49. 1:53how do you think about what today is
  50. 1:54versus what that was? You know, what's
  51. 1:56the change there in the model and what
  52. 1:59you are as actual relationship to FedEx?
  53. 2:02I I would think back in the back in the
  54. 2:05day, it was focused more on just a
  55. 2:07single van contractor model. There was
  56. 2:09there were so many of us and that's kind
  57. 2:11of what it was focused on. But over
  58. 2:12time, it's evolved into more of a
  59. 2:15multivan contract. And now we truly run
  60. 2:18it as a business. We have HR support. We
  61. 2:21have payroll. We have payroll taxes and
  62. 2:24benefits and 401ks and and we've never
  63. 2:27had that. We didn't have that back in
  64. 2:29the day. It wasn't even it wasn't even
  65. 2:30brought up. So now we we actually run it
  66. 2:32as a as a true corporation. Yeah. And I
  67. 2:35think from the FedEx standpoint is I
  68. 2:37don't think that the contract has really
  69. 2:39changed all that much. Um but our
  70. 2:41expectations that are in the contract
  71. 2:43have obviously grown quite a bit.
  72. 2:45Compliance, audit, um just you know
  73. 2:49regulations, uh guidelines and things
  74. 2:51like that that are built in the contract
  75. 2:53now, but the relationship really hasn't
  76. 2:55changed a ton. Um it's still that
  77. 2:57buffer. Uh but I think that it does get
  78. 2:59muddy. Um you know that FedEx is asking
  79. 3:02me to do this or FedEx is asking me to
  80. 3:03do that or a customer wants us to do
  81. 3:05this. Um and at the end of the day it's
  82. 3:07not. Uh it is in fact whether you're an
  83. 3:10ISPA or a TSPA and you've signed those
  84. 3:12agreements um or if you're an ISP TSP
  85. 3:15and signed those agreements. Um I think
  86. 3:17the big thing is that those are
  87. 3:19guidelines that you've signed. If you
  88. 3:21read it, you should read it. Um I have
  89. 3:24one with me almost all the time. If we
  90. 3:26travel, we have it with us. Um I have
  91. 3:28them printed out uh at my desk so I can
  92. 3:31reference it quite a bit. Um, I'm very
  93. 3:33much always in safety, safety and driver
  94. 3:35qualifications because that's kind of my
  95. 3:37bubble. Um, and the managers and and
  96. 3:40Dave are constantly asking me questions
  97. 3:42about what section of the contract
  98. 3:43that's in and what does it say? How do I
  99. 3:45treat this? Um, but it's never um, well,
  100. 3:48FedEx wants us to do this or FedEx
  101. 3:50terminated my guy or FedEx DQed my guy.
  102. 3:52Well, that that happens, but it's not.
  103. 3:55Um, you signed an agreement that held
  104. 3:57you to an end result based on what
  105. 4:00you've agreed to. So at the end of the
  106. 4:02day, yes, FedEx had you sign the
  107. 4:04contract, but you signed it. Um, so now
  108. 4:06these are things that you have to adopt
  109. 4:08and put into your business. So the
  110. 4:11relationship with your HR team and your
  111. 4:14references need to be between Slickers,
  112. 4:17ISPA, and the employee. Uh, and that one
  113. 4:20does get, like I said, it gets super
  114. 4:22muddy because what do we do? We service
  115. 4:24FedEx. Um, and it just it gets blurry.
  116. 4:27Um so I think um understanding that I I
  117. 4:29always talk about you know stay in your
  118. 4:31lane or know your role or you know we
  119. 4:33can use all these like fun things but at
  120. 4:34the end of the day it's very easy to
  121. 4:36manage when you take that understanding
  122. 4:40not easy to manage all the things but
  123. 4:42easy to understand um a better
  124. 4:45understanding of who we are in the
  125. 4:47network gives you a better understanding
  126. 4:49of how to manage your business and
  127. 4:52that's I think the easy part of just
  128. 4:54stop looking at it one way and and
  129. 4:56really manage it as your own. The cool
  130. 4:59part about it is they do let you manage
  131. 5:00your own business. Right, wrong, or
  132. 5:02other, it's yours to manage. They don't
  133. 5:04want to manage it. Um, so, but they're
  134. 5:06giving you the guidelines. You've signed
  135. 5:07the contract. You stepped into the
  136. 5:09sandbox with all the tools and all the
  137. 5:10things that you have to do. Um, and now
  138. 5:13you have to execute per the agreement
  139. 5:15that you signed. Um, so nothing's
  140. 5:18forced, nothing's, you know, kind of
  141. 5:21mandated outside of what's mandated in
  142. 5:23the contract, which again, you agreed
  143. 5:24to. So, I think it's that relationship
  144. 5:27between are they a partner, are they a
  145. 5:29vendor, you know, are we a vendor, are
  146. 5:31they a customer, and what that looks
  147. 5:32like. I don't think necessarily the
  148. 5:34contract has changed a ton. Um,
  149. 5:37expectations of when Dave was one guy.
  150. 5:40It's just the things that are now
  151. 5:41expected of us have grown quite a bit.
  152. 5:43And then, you know, little things of how
  153. 5:45we pay people. You're obviously not 1099
  154. 5:47anymore. And there's some protections.
  155. 5:49Um, but I really don't think being the
  156. 5:51compliance girl, right? the one in the
  157. 5:53office that's kind of putting the HR
  158. 5:55things together. I don't think there's
  159. 5:57one in there that I would say, "Well,
  160. 5:58that's just that's just dumb, right?"
  161. 6:00Like, there's things that you have to
  162. 6:01do. And at the end of the day, when we
  163. 6:03lean in, it it's made our company
  164. 6:05better. Uh, but you're not dealing with
  165. 6:08a mom and pop anymore, right? You're
  166. 6:10dealing with a company that is a full
  167. 6:12organization. Um, and we need to
  168. 6:13communicate like a full organization,
  169. 6:15and you need to run your business like a
  170. 6:16full organization and read the contract
  171. 6:18and know what you've signed up for.
  172. 6:20Yeah. So, maybe more loosey
  173. 6:23goosey, hey, where the packages, you
  174. 6:26know, maybe when Dave was one guy, one
  175. 6:28truck, those compliances and checkpoints
  176. 6:30weren't there. Um, but they've, you
  177. 6:32know, but every year you have a clear
  178. 6:34opportunity to sign or not sign. Um, so
  179. 6:37you're walking into that, like I said,
  180. 6:38you're kind of jumping in the sandbox
  181. 6:40with both feet. Um, so I think that's a
  182. 6:42a big difference. Um, yeah. And and
  183. 6:45really understanding FedEx as your
  184. 6:47customer, like you said, not your
  185. 6:48partner. They're not your business
  186. 6:49partner. They're not your employer. Uh
  187. 6:52so how do you see people getting that
  188. 6:54wrong? Like what what are the the
  189. 6:55problems that could come from not
  190. 6:57properly understanding what the
  191. 6:59relationship really is between you and
  192. 7:00FedEx? Um so I think if you are in the
  193. 7:03transportation industry and you just
  194. 7:04think of a example outside, right?
  195. 7:06You're ABC trucking and you're going to
  196. 7:08go for bid, right? And Josh owns this
  197. 7:10company and I want to service your
  198. 7:12contract and I win the bid. Um that's
  199. 7:15the same relationship, right? like you
  200. 7:17have the opportunity to to service that
  201. 7:20customer. So I would see you and your
  202. 7:22company as a customer. I wouldn't see
  203. 7:24you even if we're friends or even if
  204. 7:25we're friendly. You there's a line where
  205. 7:28I've agreed to provide services to you
  206. 7:31and you are my customer. And I think
  207. 7:33that line gets blurred. Um whether it's
  208. 7:36interpretation at the terminal level. I
  209. 7:37think that has a lot to do it of how
  210. 7:39terminal managers or local managers
  211. 7:42treat the staff and the demands that
  212. 7:43they make instead of presenting them
  213. 7:46with the issue and allowing us to
  214. 7:48problem solve it based on what's in our
  215. 7:49contract. So I think that makes it a
  216. 7:51little bit muddy. Um but again, not bad.
  217. 7:53They're trying to help. They're trying
  218. 7:55to relate and communicate. And I think
  219. 7:58um you know Dave always says like you've
  220. 8:00never been in a truck, you've never even
  221. 8:01gone on a ride along. How do you know
  222. 8:02what we do? Um so those are some some
  223. 8:04hard things um to have the the
  224. 8:06relationship. But I think over almost 20
  225. 8:08years, Dave's earned 25 because we
  226. 8:12actually know people from Columbus when
  227. 8:13Dave was a package handler that are now
  228. 8:15running terminals up north um where we
  229. 8:18service. Uh but I think um having those
  230. 8:21relationships whether you consider
  231. 8:22yourself friendly or you know co-workers
  232. 8:25or whatever that looks like your
  233. 8:27colleagues in this in this industry that
  234. 8:30you're playing in the sandbox with right
  235. 8:32at the end of the day they are our
  236. 8:34customer. Um, so the answer that Dave
  237. 8:36pushes forward is always say yes, right?
  238. 8:38We're gonna we're gonna make it go away.
  239. 8:40We're going to fix it. We're going to do
  240. 8:41it. We'll make it happen. We'll cover
  241. 8:43it. Um, no different than if you went to
  242. 8:45a restaurant and you wanted your food
  243. 8:48cooked the right way or every customer
  244. 8:50vendor relationship has expectations.
  245. 8:53Um, and this one is, you know, very
  246. 8:56complex. It's gotten much more complex
  247. 8:57over the years, but that I think is
  248. 8:59where that fuzzy or muddy, you know,
  249. 9:02relationship. Um and some terminal
  250. 9:04managers keep it very black and white
  251. 9:06like this is you know we are your
  252. 9:08customer and some you forge
  253. 9:10relationships with. Um but at the end of
  254. 9:13the day the contract is going to hold
  255. 9:14you um you know to disqualifications and
  256. 9:17requirements and hiring requirements and
  257. 9:20truck requirements and timelines and
  258. 9:22service and all the things. Everything
  259. 9:24is in that contract. It is. It's a
  260. 9:26wealth of information and I think when
  261. 9:28you jump in there's really only two or
  262. 9:30three sections that you need to put your
  263. 9:32nose in. Everything else is you know
  264. 9:34leases and you know very very simple um
  265. 9:37you know documents that are you know
  266. 9:39more um black and white but the ones
  267. 9:41that are to be left to interpretation I
  268. 9:44think um are the ones that and those are
  269. 9:47the ones that we take a little bit
  270. 9:48harder um because as contractors we do
  271. 9:50wear our contract on our sleeves, right?
  272. 9:53We're super proud of what we do. Um,
  273. 9:56we're very passionate about our
  274. 9:58employees and and what we do and how we
  275. 10:00do it. So, when it's a contract level,
  276. 10:04no, no, or a contract level, it's well,
  277. 10:06FedEx is making me do this or the
  278. 10:08customers asking me. No, no, it's it's
  279. 10:10it's in schedule I or it's in schedule,
  280. 10:13you know, it's in the schedule. So, you
  281. 10:14have to read it. Um, and you have to
  282. 10:16know it and and beholden to it and
  283. 10:18really um, you know, service that
  284. 10:20contract because whether they looked it
  285. 10:22over the other other time or you didn't
  286. 10:24do it, you want to make sure that you're
  287. 10:25you're operating to the letter of the
  288. 10:28contract. And once you embrace that, it
  289. 10:30becomes a lot easier to be an ISPA or
  290. 10:33any ISP and a TSP because you know what
  291. 10:36the rules are. You know, when you got
  292. 10:37into the sandbox, what you're being held
  293. 10:39to instead of saying like, "How did this
  294. 10:41happen?" You're like, "Well, it's in
  295. 10:426.4. You just weren't looking." you
  296. 10:44know, it's not fine print. It's there
  297. 10:47for you to review. So, I think that's
  298. 10:49the and if you lean in and embrace it,
  299. 10:51it becomes a much richer relationship
  300. 10:54with your customer that provides growth
  301. 10:56opportunity and a little bit of
  302. 10:59forgiveness and a little bit of, you
  303. 11:00know, conversation even um to when you
  304. 11:03have those bad days, you can call and
  305. 11:05Dave has a good relationship. He's like,
  306. 11:06"Hey, man. I I get it. Like, tough day.
  307. 11:08Guy walked out or guy got sick or guy
  308. 11:10had to leave and we're going to do our
  309. 11:12best, but we'll catch up tomorrow. we
  310. 11:13have a plan. Um, and I think that's um,
  311. 11:16he's become very respected in that way.
  312. 11:18Uh, so I think that's the important
  313. 11:20piece of that customer relationship is
  314. 11:22rel realizing, you know, any other
  315. 11:25trucking industry, you go for bid. You
  316. 11:27have all these trucks and you need a new
  317. 11:28contract. Uh, you're one of five or six
  318. 11:31that are bidding on it. Um, and the
  319. 11:32ability that FedEx gives us to
  320. 11:34renegotiate without going out for bid is
  321. 11:37actually a really fantastic privilege
  322. 11:39and benefit of, you know, as long as
  323. 11:41you're doing the right things. Yeah.
  324. 11:43there's that. But it I mean it is like
  325. 11:45when you're going out for bid, your goal
  326. 11:46is to know what they expect and to fight
  327. 11:48to maintain a high level of customer
  328. 11:50service so that they continue to come
  329. 11:52back to you or may choose you in the
  330. 11:53future. And it's the same here except
  331. 11:55for like you said, we get the benefit of
  332. 11:58having, you know, we have the rights to
  333. 12:00this this lane or these zip codes and
  334. 12:03it's just that they have laid out in a
  335. 12:06contract the things that they are
  336. 12:07expecting of you and we have signed that
  337. 12:08contract. But at the same time, I do
  338. 12:11think it what you're saying is correct
  339. 12:13that it's it's a mental shift to a
  340. 12:15certain extent of understanding how this
  341. 12:16is and embracing it because it can be
  342. 12:18hard to just, you know, feel like this
  343. 12:21person, especially when you're talking
  344. 12:22about a terminal manager, one person.
  345. 12:24Yeah. That that you see often, maybe not
  346. 12:26every day, but often. And you're like,
  347. 12:29that is the problem is my relationship
  348. 12:30to him. But ultimately, it is this
  349. 12:33person's a tough terminal manager. They
  350. 12:35won't let me do this and this. And the
  351. 12:37other good thing is I think um Dave as
  352. 12:39you've mentioned a lot of times is they
  353. 12:40give you a ton of chances, right? Like
  354. 12:43they give you the tools whether
  355. 12:44sometimes they're not 100% transparent
  356. 12:46or maybe they are, but they give you
  357. 12:48Spotlight, they give you the DSW, they
  358. 12:50give you FCC, they give you access to
  359. 12:53what's going on in your business. And
  360. 12:55then you add in amazing technology like
  361. 12:58Groundcloud or, you know, some of these
  362. 13:00other, you know, Truck Spy or whatever
  363. 13:02these monitoring, you know, whatever
  364. 13:03you're in. Um, you know, there's from
  365. 13:07ground cloud to my ground force to what
  366. 13:09I mean there's a thousand of them,
  367. 13:10right? That that are there to help you.
  368. 13:11Tire savers, RCPA with field cards. You
  369. 13:14have all the tools to run your business
  370. 13:16and to manage it. So, when you're not
  371. 13:19doing great, it shouldn't be a surprise,
  372. 13:21right? You've stepped outside the
  373. 13:23sandbox, right? You've broken some rules
  374. 13:25or you're missing the mark on some
  375. 13:27things. Um, so I think that's the key is
  376. 13:30to get ahead of it. Uh, but nothing
  377. 13:32should be a surprise. If you know your
  378. 13:33contract and you know who you are, know
  379. 13:35your role, then nothing should be a
  380. 13:37surprise. And FedEx is fairly forgiving
  381. 13:40on some things. Some things they just
  382. 13:42can't move the needle. Um, when it comes
  383. 13:44to disqualifications and integrity and
  384. 13:45things like that, there are some hard
  385. 13:46lines. You should know those things. But
  386. 13:49as far as, you know, the opportunity to
  387. 13:50cure, curative letters, letters of
  388. 13:52intent, um, or letter of asurances,
  389. 13:54things like that, like those are things
  390. 13:56that if I were doing business with Josh,
  391. 13:58Josh would be like, "Yeah, I'm going to
  392. 13:59go with that guy cuz that was a little
  393. 14:00bit of a problem last year." Um, and
  394. 14:02FedEx is not like that. Our customer
  395. 14:04wants us to be here. Um, even though
  396. 14:06sometimes it gets super bumpy, but
  397. 14:08they're very transparent about what that
  398. 14:11relationship has looked like over the
  399. 14:12past year. Yeah. So, we talked some
  400. 14:17about how that impacts, you know, your
  401. 14:19relationship with the actual customer.
  402. 14:20How does that dictate your relationship
  403. 14:22to your actual employees? How do you
  404. 14:24inform how you like have to actually
  405. 14:27hold them accountable? How does it go
  406. 14:28into things like an employee agreement?
  407. 14:30How how do those things? Yeah, we just
  408. 14:31had that um with one of our drivers. Um
  409. 14:34Dave, we had a really tough
  410. 14:35conversation. Good guy. um just had some
  411. 14:38you know had some misses on signatures
  412. 14:40and it became a big integrity issue and
  413. 14:43we went back to the contract and the
  414. 14:45contract you know was like well the
  415. 14:46managers my VCs were like hey FedEx is
  416. 14:48DQing this guy as a Friday and I'm like
  417. 14:51no we should DQ him because in our
  418. 14:53contract it says that that's a zero
  419. 14:55tolerance you know that we will not
  420. 14:57assign services to any personnel that
  421. 14:59does this so um you know it's a sticking
  422. 15:02point with some of the things and we are
  423. 15:03having conversations with um our
  424. 15:06customer to allow us to maybe change or
  425. 15:08or mold maybe what that looks like going
  426. 15:10favor forward. So is there a depth or a
  427. 15:13level or um you know is there retraining
  428. 15:15that can be done or what does that look
  429. 15:17like? But right now um I read the
  430. 15:19contract and we had to terminate that
  431. 15:21employee and not because FedEx told me
  432. 15:23to because that's what my contract says
  433. 15:25I need to do. So I agreed to that and I
  434. 15:28had Dave and I had to have the hard
  435. 15:30conversation when my business actually
  436. 15:31says I'm going to retrain based on Ohio
  437. 15:34guidelines. I'm going to do all this
  438. 15:35stuff.
  439. 15:36um you know I'm going to give them an
  440. 15:37opportunity to fix it and you know
  441. 15:39disciplinary track that didn't stick
  442. 15:41this time. So understanding kind of what
  443. 15:44that relationship looks like um we are
  444. 15:46completely shifting our handbook. We're
  445. 15:48giving much more transparency to our
  446. 15:50employees of the zero tolerances, the
  447. 15:5436, you know, the 36month suspensions.
  448. 15:57Um even what a DUI looks like and what
  449. 15:59an SAP program looks like for that. So
  450. 16:02we're doing a little bit more
  451. 16:03communication. Uh but I think that's
  452. 16:05the, you know, that's the tough part is
  453. 16:07that's the agreement that he signed. I'm
  454. 16:09held to it. I have to hold the employees
  455. 16:11to it. And we have to also educate with
  456. 16:13our BCS so they know what to do when
  457. 16:16something happens. It's just like
  458. 16:17reporting an accident. Do you look the
  459. 16:18other way and hope they don't catch you?
  460. 16:20No, you have to lead with integrity and,
  461. 16:23you know, take it on the chin and report
  462. 16:25it when it's reported. And sometimes
  463. 16:26it's, you know, it's super uncomfortable
  464. 16:28to do the right thing. But the
  465. 16:30contract's there to hold you to doing
  466. 16:31the right thing by your customer. And I
  467. 16:34always say, you hear me say it all the
  468. 16:35time, my only customer. So I don't have
  469. 16:38in the trucking industry like I go out
  470. 16:39to bid with Josh and I go out to bid
  471. 16:41with these other people. I don't have
  472. 16:42that. FedEx is my only customer. So I
  473. 16:44can't screw it up, right? And you have
  474. 16:46to do every day you have to get up and
  475. 16:48and monitor those contracts and play in
  476. 16:50the sandbox with the rules that you've
  477. 16:52agreed to. So I think that's the the big
  478. 16:54thing. Um and again it's not hard and
  479. 16:57it's not icky and it's not, you know, no
  480. 16:59one's screwing you. I think it's just
  481. 17:01once you change that mindset that a
  482. 17:04better understanding will lead to a
  483. 17:06better understanding. It really does
  484. 17:08open you up to running your business
  485. 17:09better and having a more respectful and
  486. 17:12an open relationship with our customer
  487. 17:14and and I think ultimately that is
  488. 17:16really important for having productive
  489. 17:19conversations with the with the customer
  490. 17:21with about you know changing or at least
  491. 17:25being open to to modifying some of these
  492. 17:27policies that are grayer. So, you know,
  493. 17:30if you're constantly the person who is
  494. 17:32just bashing the customer and talking
  495. 17:35about how it's all their fault that they
  496. 17:36are, you know, the the problem in the
  497. 17:39network is them exclusively. Then when
  498. 17:41you come and you then have a problem
  499. 17:43that you're actually trying to resolve,
  500. 17:45it's difficult to have those
  501. 17:46conversations when they know what you're
  502. 17:48coming from and they haven't seen a
  503. 17:49bunch of open, you know, kind of
  504. 17:50transparent, productive conversations
  505. 17:52from you in the past. Whereas if your,
  506. 17:54you know, your baseline is, I understand
  507. 17:56the contract. I understand what's
  508. 17:58expected of me. I've signed that
  509. 17:59contract, but I still see some issues
  510. 18:01with X, Y, and Z. Here's some data.
  511. 18:04Here's some reasons I want to have this
  512. 18:05conversation. It's very different from
  513. 18:07the customer's perspective, and it's
  514. 18:09much more likely to be, you know,
  515. 18:10effective. Yeah. Yeah. Yes, definitely.
  516. 18:13um they're more open and amanable to
  517. 18:15having conversations when you're um
  518. 18:17communicating with data and fact and and
  519. 18:20pointing to maybe some things or
  520. 18:22misinterpretations in the contract. Can
  521. 18:23you just clarify? Um so those things
  522. 18:25those definitely and again when you sign
  523. 18:28the contract and understand that you've
  524. 18:29signed it right they're your rules and
  525. 18:31regulations even if they're fuzzy um in
  526. 18:34your in your mind you can ask for that
  527. 18:35clarity but you know it's not they're
  528. 18:38not just out there to to smack you
  529. 18:39around. Um, and I think
  530. 18:43other pizza shop, things like that. I
  531. 18:46mean, there are so many benefits to this
  532. 18:49network and the way that the contract um
  533. 18:51is written, right? We get paid every
  534. 18:53Friday for over, you know, almost 20
  535. 18:56years. The check always comes. Sometimes
  536. 18:58it's wrong, sometimes it's right,
  537. 18:59usually it's right. Uh, but they always
  538. 19:00fix it very quickly. Um, so I think
  539. 19:03that's a a plus. um when we've been in
  540. 19:05other consulting businesses or service
  541. 19:08businesses where we have to wait for the
  542. 19:1015-day net or a 30-day net or somebody
  543. 19:13pays late. Um so there's a collection
  544. 19:15process like that doesn't happen. Um
  545. 19:17with our pizza shops, we have to
  546. 19:20advertise, right? So there's a budget
  547. 19:22that we have to then pay out to get new
  548. 19:26customers. Well, guess what? We don't
  549. 19:28have to do that, right? You sign the
  550. 19:29contract, the boxes come. they always
  551. 19:31come, you know, and that's the beautiful
  552. 19:34thing is that it's a security, right?
  553. 19:36And and in if you get too far away from
  554. 19:39it and too much in this, you know,
  555. 19:41they're my partner, they're supposed to
  556. 19:42be treating me better, blah, blah, blah.
  557. 19:43And you're not leaning into what the
  558. 19:45relationship really looks like, you
  559. 19:47forget those benefits. You forget that
  560. 19:49you don't have, you know, any accounts
  561. 19:51receivables when it comes. It's there
  562. 19:53every Tuesday. You know, you know what
  563. 19:54you're getting and then on Friday there
  564. 19:55it hits. Um, so there's some really
  565. 19:58positive things. the contract
  566. 20:00renegotiation, the fact that I don't
  567. 20:01have to go out for a bit if I've been
  568. 20:03doing all the things the right way, um
  569. 20:06growth opportunities, you know, um and
  570. 20:08then the marketing, right? I don't have
  571. 20:10to do that. Come summer, hopefully FedEx
  572. 20:12is going to, you know, fill my funnel.
  573. 20:14they're going to be out there with their
  574. 20:16sales force and they're going to be
  575. 20:18leaning into new relationships and
  576. 20:21things to to bring us the volume so that
  577. 20:23we can continue to employ and and grow
  578. 20:26and do, you know, maintain the trucks
  579. 20:27and do all the things that we need to
  580. 20:29do. Um, so I think that's just the
  581. 20:31biggest, you know, understanding um, you
  582. 20:34know, when it comes to vendor, partner,
  583. 20:38friend. Yeah. Yeah. Yeah. And and you
  584. 20:41know there's all kinds of things to
  585. 20:42understand about this model and and I
  586. 20:44don't want to discount and say that
  587. 20:45people won't struggle you know that it's
  588. 20:47that it's not like there are things that
  589. 20:49happen in the model there are things
  590. 20:50that happen in this business where you
  591. 20:51you will struggle there there are
  592. 20:53entrepreneurs that will struggle and
  593. 20:54will not succeed in this business but
  594. 20:57most small businesses fail you know most
  595. 21:00of them do and they most of them fail
  596. 21:01quickly and you think about this I see
  597. 21:03people come in all the time that you
  598. 21:05know they get into this business and
  599. 21:06they last for 10 20 years it's it's a
  600. 21:08really strong model for a way to be an
  601. 21:10entrepor reneur with a lot of security
  602. 21:12compared to just about anything else
  603. 21:13that you jump into. So, there are pros
  604. 21:15and cons. There's things to understand
  605. 21:17about the model, your relationship to
  606. 21:19FedEx, and you should go in eyes wide
  607. 21:21open because you're signing that
  608. 21:22contract almost day one. Yeah. So, make
  609. 21:24sure you know it. But at the same time,
  610. 21:26just like you're saying, I think it's
  611. 21:27really important to understand how that
  612. 21:29model impacts you, but also the benefits
  613. 21:30that come from that type of model. Yeah.
  614. 21:32And there and there are ways. I know the
  615. 21:33the big, you know, kind of elephant in
  616. 21:35the room when we talk about the contract
  617. 21:36is the financial piece. Um where people
  618. 21:39are are struggling. Um there's there's
  619. 21:42plenty of opportunities along the way to
  620. 21:44provide hard facts and data. Um and if
  621. 21:46you're not getting that conversation
  622. 21:49opened with your local team, there's
  623. 21:51ways to escalate and there's ways to
  624. 21:53escalate. There's always someone that's
  625. 21:54willing to listen. Um whether that's,
  626. 21:57you know, something that you're you're
  627. 21:58doing wrong or you need to, you know,
  628. 22:00trim the fat or or maybe you're doing
  629. 22:02everything right and there's just
  630. 22:03something that's a miss. Uh but I think
  631. 22:05those are, you know, definitely things
  632. 22:06that you have that path to ask
  633. 22:08questions. You're not just stuck. I
  634. 22:10mean, if if I were doing business with
  635. 22:12Josh and his company, if I signed that
  636. 22:13contract and things changed, I might not
  637. 22:16be able to change things. Um, but there
  638. 22:18are things that we're stuck when, you
  639. 22:19know, when the economy changes, we don't
  640. 22:21get to say, "Okay, well, fuel's $2 more
  641. 22:23a gallon, so I'm going to push that on
  642. 22:25to you, right?" It's we have to get a
  643. 22:28little bit creative. So, we do
  644. 22:29understand we're not immune to any of
  645. 22:31the, you know, uncomfortable things that
  646. 22:34happen in trucking um or two engines go
  647. 22:37at the same time. That's tough, right?
  648. 22:39That's that's uh capital and credit card
  649. 22:41bills and things that cause you a lot of
  650. 22:43stress. But again, I think this is one
  651. 22:45thing that Dave and I lean into as far
  652. 22:48as understanding that contract and it
  653. 22:49really does give us a better
  654. 22:50understanding because even our managers
  655. 22:52are like, "Hey, they're doing this and
  656. 22:53they like, "No, no, we agree to that and
  657. 22:56now we have to make good on it." Yeah.
  658. 22:58It impacts how we operate, but we did
  659. 23:00agree to it. Yeah. But we did agree to
  660. 23:01it. Yes. It feels very icky today to let
  661. 23:03that driver go. But, you know, he also
  662. 23:05kind of should have known better. So,
  663. 23:08perfect. Well, I This is a topic that
  664. 23:10you could dig into all day. There's all
  665. 23:12kinds of things. So, I I appreciate you.
  666. 23:14I think it's it's just important to
  667. 23:15rightsize the thought process on what
  668. 23:18your role is and how you fit into the
  669. 23:20FedEx equation and how they are your
  670. 23:22customer. Yeah. Thanks, Josh. Yep.
  671. 23:24Thanks, guys.
  672. 23:26[Music]

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